UTMA rules state early withdrawal penalties cannot be charged on a Higher Learning Fund CD the Bank offers. However, if the withdrawal is made within the first 6 days after the deposit, we are required to charge 7 days interest per Reg D, correct? Or do UTMA rules trump Reg D and we can't charge any penalties?

Thanks!

There is no exclusion from Regulation D required penalties for such an account. Plus, this sounds like a State law issue.

Thank you. That's what we were thinking but weren't sure if we were missing something.